Question

You deposited $120 in an account with an interest rate of 4%. In how many years will the simple interest earned be $1.92?

Answer 1

Answer: About 5 months

Equation:

t = I / Pr

Step-by-step explanation:

First, converting R percent to r a decimal

r = R/100 = 4%/100 = 0.04 per year,

then, solving our equation

t = 1.92 / ( 120 × 0.04 ) = 0.4

t = 0.4 years

The time required to

accumulate simple interest of $ 1.92

from a principal of $ 120.00

at an interest rate of 4% per year

is 0.4 years (about 0 years 5 months).